Federal states reject tax plans: who pays the price?

Federal states reject tax plans: who pays the price?

The federal government plans to take two significant tax measures: an increase in the commuter flat rate and a reduction in VAT in the catering sector. From January 1, 2026, the commuter flat rate is to be increased by 8 cents per kilometer, while the VAT could be reduced from 19 to 7 percent. These are crucial steps, which according to merkur.de should burden the state treasury with up to 23 billion euros, of which more than 12 billion for countries and municipalities.

The reactions to these plans are mostly negative, especially on the part of the finance ministers of the federal states. Marcus Optendrenk, the finance minister of North Rhine-Westphalia, particularly criticizes the suggestions and emphasizes that according to the coalition agreement, the federal government must ensure the financing of its own measures. He receives support from other state governments that also urge the responsibility of the federal government. For example, Berlin's finance senator Stefan Evers expresses concerns about the implementation and makes it clear that Berlin cannot simply agree.

financial burdens for the countries

A central argument of the critics is that the implementation of the coalition agreement could withdraw billions of taxes to the federal states. The principle of "combination connexuality" is often cited in this context; In political circles it is said: "If you order the music, you have to pay it too." The Süddeutsche Zeitung explains that the federal states are asking for the federal government to be the financial burdens of its resolutions. Finance Minister Christian Piwarz from Saxony confirms this and criticizes that the federal government enacts laws that reduce the income of the federal states or increase their expenses without creating a compensation.

The Hamburg Finance Senator Andreas Dressel describes the planned increase in the commuter flat rate as a "real false incentive" and calls for a solid financing for the federal government to support the economy. This corresponds to the general attitude among the federal financial chiefs, as well as a survey of the MDR , the massive resistance in the Federal Council against the project.

summary of the reactions

• The majority of the federal states are critical of the plans of the federal government.
• The increase in the commuter flat rate is considered unfavorable and as a false incentive.
• There are demands on the federal government to take the financial consequences of its measures.
• The coalition partners seem to be disagreed with the financing of the new measures.

Despite the above all critical voices, the approval from Bavaria, where Finance Minister Albert Füracker considers the increase in the commuter flat rate important, from inconsistent positions within the government parties. In view of the thin majority in the Federal Council, resistance to the plans could bring serious challenges for the federal government. The discussion about the tax funding of investments and a possible reform of income tax, on the other hand, finds broader approval among the financial officers and could play a role in future negotiations.